Global Stocks Surge amid U.S.’ Sticky Inflation, Leaving China and Hong Kong Behind

The BLOM Stock Index (BSI) compiled by BLOM Invest Bank daily slightly increased weekly by 0.1% to 2,085 on October 10^th, 2024.

On the Beirut Stock Exchange (BSE), the real estate sector grasped the lion’s share of the BSE’s trading value with a stake of 88.91%, while the banking sector came next with an 8.64% stake, and the industrial sector’s share was 2.45%. The most noteworthy trades throughout the mentioned period included:

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 27.78 on October 10^th, 2024.

Moving to the global markets, U.S. stock markets experienced modest gains this week, with the S&P 500 rising 0.50%, the Dow Jones up 0.24%, and the NASDAQ increasing 0.80%. These moves come as investors await the latest producer inflation report and corporate earnings from major banks. Additionally, the above-expectation U.S. inflation rate of 2.4% yoy in September, along with the 14-month high in initial jobless claims have raised concerns that the Federal Reserve might forgo a rate cut in December or January, which surprisingly drove stock prices higher.

Across the Atlantic, European stocks showed mixed results this week, reflecting a cautious mood among traders. Investors are still processing the higher than expected U.S. inflation report, while awaiting updates on potential Chinese stimulus measures. This uncertainty has led to varied performances across different European indices.

Asian stocks also had varying results this week. The Nikkei surged by 2.51% as the Yen’s recent weakness boosted Japanese equities’ performance. In contrast, the Hang Seng Index and Shanghai Composite Index fell sharply by 6.53% and 3.56% respectively, driven by investor caution as they await a press conference from China’s Ministry of Finance, where a new fiscal stimulus package is expected to be announced to support the economy.

As for the MSCI Emerging Market index, it decreased by 1.67% this week to record 1,160.

Arab stock markets primarily rose this week, with the Abu Dhabi Securities Exchange Index and Dubai Financial Market Index increasing by 0.88% and 0.68%, respectively. However, Bourse Kuwait experienced a slight decline of 0.08%. This overall positive trend indicates that traders have already priced in geopolitical tensions, which seems to have bolstered investor confidence across the region.

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